A letter to GW, Please pass this on!

[gendoikari87]

Dear, GW

In reguards to the recent price hike I would like to express that I acknowledge that being a bigger company requires more overhead and therefore more expensive products. However, with the recent price hikes it seems like you have abandoned your average gamer in favor of higher returns. This bussiness model you feel will net you more income as even with less players, you will recieve more money. However I would like to stop you for a minute and show you, that you are not a monopoly, that more and more gamers are turning to other game systems that do not abuse their customers with higher than inflation price increases every six months. If you will note here in this article by one of the pillars of the community Belloflostsouls.com, even warmachine and hoards has you beat on an army per army basis.

"Its that time of year again. Lets look at some sample armies from the popular gamesystems and see what wargaming costs these days.



Warhammer 40,000

First up is a pair of sample 1500 armies, one smaller and elite, the other more on the horde side of things. Lets see what Games Workshop is running these days:


Grey Knight Army - 1500 pts

HQ: Grand Master, Master Crafted Psycannon, Master Crafter Nemesis Force Sword, Blind Grenades, Psykotroke Grenades
Elites: Purifiers X 10, Halberds X 5, Daemon Hammer X 2, Psycannon X 2, Incinerator X 1, Rhino Troops: Grey Knight Strike Squad X 10, Psycannon X 2, Psybolt Ammunition, Rhino
Troops: Grey Knight Terminators X 5, Psycannon, Halberds X 4, Daemon Hammer X 1
FA: Storm Raven Gunship, TWL Lascannons, TWL Multi-Melta, Extra Armor
Heavy: Dreadknight, Personal Teleporter

Cost to build
Grey Knight Strike Squad Box X 4 = $132.00
Grey Knight Terminator Box X 2 = $100.00
Storm Raven = $66.00
Dreadknight = $53.75
Rhinos Kits X 2 = $70.00

Total cost = $421.75

The extra Terminator kit is so you can make your Grand Master and have enough guns. They do not make a Grand Master with a Pyscannon at this time. Plus it also gives you more options for your regular guys with Halberds and other choices.

Ork Horde - 1500pts

HQ: Warboss, Power Klaw, Attack Squig, Eavy Armor, Cybork Body, Bosspole
HQ: Big Mek, Kustom Force Field
Elites: Lootas X 15
Troops: Nobz X 5, Painboy, Power Klaw X 3, Big Choppa X 1, Eavy Armor X 5, Cybork Body X 5, Waagh Banner, Bosspole, Battle Wagon, Big Shoota X 2, Deff Rolla, Grot Riggas
Troops: Boyz X 20, Big Shoota X 2, Shootas X 17, Nob, Power Klaw, Bosspole
Troops: Boyz X 12, Nob, Power Klaw, Bosspole, Trukk, Reinforced Ram
Troops: Boyz X 12, Nob, Power Klaw, Bosspole, Trukk, Reinforced Ram
FA: Warbuggies X 3, TWL Rokkits X 3
Heavy: Battle Wagon, Big Shoota X 2, Deff Rolla, Grot Riggas

Cost to Build
Warboss - Black Reach - $10.00
Big Mek - $20.00
Loota Box X 3 - $75.00
Nobz X 1 - $25.00
Boyz X 5 - $145.00
Trukk X 2 - $66.00
Warbuggies X 3 - $75.00
Battle Wagon X 2 - $132.00

Total = $548.00

WARMACHINE/HORDES

Next up is a pair of standard sized armies - one elite and one more horde-ish as well.

Khador - 35pts

Khador Battlebox
pButcher
Great Bears
Greylord Ternion
Kovnik Joe
Winterguard (full sized)
Winterguard UA
2x Rocketeers
Widowmakers

Cost to Build
$237

Legion - 35pts

Lylyth
Carnivean
2x Shredders
Teraph
10x Swordsmen
10x Hex Hunters
Bayal
Strider Deathstalker

Cost to Build
$193 "



as you can see GW, you have gotten to level where comprable armies of other systems are less expensive. While your current bussiness model is one that will undoubtedly bring you a short term net gain in profit, do note that if this trend continues or even if you do not relax your prices, you are going to start to loose your old customers. I know what you are about to say, and it's that new customers are more important because they bring in more revenue, and you are correct about this. However with the comprable cost of building an army being twice or more that of a comprable warmachine or hordes army, you have already began loosing out bussiness to the other game. And they aren't the only ones. Even Flames of war is cheaper.

GW, if you continue down the short term profits path of increasing revenue by increasing prices, you are going to strangle your own lifeblood. Old players are moving to other games, and fewer new players who would be warhammer players are now playing warmachine. You may not see this because of the expansion of the the hobby itself but warmachine and flames of war are growing, and once they reach a level of acceptance in the community that is as respected for volume of players as you are (the are already respected because of price, model quality, and customer care) then your game will be up, and GW will wither into nothing. You have reached an impass where you have turned your back on the players that made you great in return for short term profits. While I recognize that this is necessary in the corporate world to prevent stock losses, there are other options. Invest in technology that will make the production cheaper, and integrate vertically would be my suggestions. But you need to reduce prices, and obviously the old price was not enough. Higher volume sales from lower prices obviously won't be enough, but simply increasing prices is a stop gap measure at best. I know you can do better than this. Please don't let my hobby strangle to death.

If you are a Warhammer, Warhammer 40k, or Lord of the rings player who would like GW to treat it's customers fairly, Copy this message and send it to GW.

 

[generulpoleaxe]

The only way they will listen to you is if you and/or a group of people buy a fuck load of shares. Until then all you are going to do is waste your own time.

Vote with your wallet, it's far easier.

 

[supervike]

Yeah, I hate to sound too cynical about it, but GW long ago abandoned the 'average' gamer.

More power to them, it's their money and they can do their business however they see fit. I have the same amount of loyalty to them as they do to me.

They are certainly not the only game in town. Hell, they aren't even the best game in town.

 

[Tercha]

"If you are a Warhammer, Warhammer 40k, or Lord of the rings player who would like GW to treat it's customers fairly, Copy this message and send it to GW."
Put it through a spellchecker 1st - Just in case of the unlikely event of them reading it and taking notice.

 

[kathrynloch]

Being a "former" LOTR collector, painter, gamer, I feel your pain and completely understand your frustration and desire to do something about it. I applaud your motivation and efforts to make your thoughts and feelings heard. It is a well known fact that for every 1 letter any company receives regarding a complaint, there are at least 100 people who feel the same way but didn't bother to write it down or mail it. I know those numbers have changed since I last read the stat, they have increased. So I'm really sorry to be such a stick in the mud.

Every single time GW does something like this (which since I've been collecting has been quite often), out pops a letter/petition citing factoids and the error of their ways. Enraged patrons gather the pitchforks and torches, shouting their defiance. They will no longer bow to the greedy overlord of a gaming company! They will rebel! They will right this injustice!

About a week later they get bored and go home. GW continues on its way.

You can see how well these letters/petitions/rebellions have worked in the past and forced GW to change their business practices.....okay...maybe not.

Keep in mind that the definition of insanity is to repeat one's previous actions but expect a different result.

And generulpoleaxe pretty much nailed it - the shareholders of the corporation call the shots. I wonder how many of them are gamers.

 

[Chern Ann]

I've never seen so many people so angry though, it's one piece of badly handled PR after another. 1. Switch to resin (badly explained, little buy in from most) + 2. GW Australia embargo + 3. Fullblown IP lawsuit. I think Australians at the very least would think about switching to doing something else.

 

[Mr.S.Marbo]

I've never seen so many people so angry though, it's one piece of badly handled PR after another. 1. Switch to resin (badly explained, little buy in from most) + 2. GW Australia embargo + 3. Fullblown IP lawsuit. I think Australians at the very least would think about switching to doing something else.

I posted in the other thread, and I didn't know some of this was going on until I just read it now. I do know that trying to sell off a few GW things on ebay that I'll never paint to fund a few Malifaux minis is not going well, my auctions are nearly over and things like 10 x metal imperial guard unpainted are still at 99 pence hehe

 

[lono]

Boy, that letter needs to be thrown in the direction of a proof reader.

 

[kathrynloch]

I've never seen so many people so angry though, it's one piece of badly handled PR after another. 1. Switch to resin (badly explained, little buy in from most) + 2. GW Australia embargo + 3. Fullblown IP lawsuit. I think Australians at the very least would think about switching to doing something else.

I think our perceptions of "so many" angry are a bit skewed from each other, Chern. When GW had their forums, I was in the middle of it. Talk about a lot of angry, screaming natives! It was almost cyclical. Things would hum along, GW would do something stupid, then a sudden influx of people would sign up for the forums and shout their rage. People tried to organize letter writing campaigns, exactly like the one the OP wrote. The forums would shake with the uproar. Mods (all volunteers and not GW employees) would frantically lock and delete posts and nominate violators for the German Prize: Das Boot! A month later it would all quiet down and things would go back to normal. Until GW did something bone-headed again. Then it was fasten your seatbelt were on the E-ticket ride again.

Those forums certainly were not a democracy. The mods nuked any post bad-mouthing or complaining about GW or their products. Sometimes you couldn't even suggest an alternative product from another company without a GW admin getting hot. Shoot, customers were getting pissed off a lot of times because of how GW admins treated them on just the forums.

While GW never truly admitted to it, they basically shut the forums down because they became too much to moderate and because people used them as a sounding board to voice their fury. That's probably why I'm not hearing an "increase in volume" of the so many angry folks. I heard the hoards of enraged customers screaming back then and the volume is the same for me.

I agree 100% that the Aussie thing is way over the top stupid even for GW - just when you thought they had earned gold in stupid stunts, they turn around and surprise you. That could very possibly be the tipping point as I have never seen a supplier cut off dealers like that. And how it was handled? Wow!

The really frightening part - now that I've seen what GW just did, I'm recognizing "warning indicators" from Breyer Reeves International and that corporation may do something similar.

As both a business professional and a consumer, I find that sort of trend alarming. GW is not the only company in a niche market that is making bad decisions, gouging customers, tanking quality, and failing miserably at PR. Breyer Reeves is to the model horse hobby what GW is to the mini hobby. And they are doing many of the same things and making really bad mistakes and really pissing off customers. The fact that GW and Breyer Reeves are making mistakes that are so similar is also quite frightening.

 

[finn17]

Purely IMO, GW's biggest mistake was LOTR....

They were starting to wobble before that and beginning to alienate their core customers, but I reckon history will show that to be the turning point.

EDIT: That's probably wrong. GW's biggest mistake was when they stopped listening to their customers and actively silenced criticism, as Kathryn alludes to. eg White Dwarf, the world's most expensive advertising pamphlet.

 

[Aliengod3]

White Dwarf is expensive for one reason only, no outside advertising. Most magazines make their money by selling advertising space within the magazine to other companies which keep the cost of the magazines low. Since white dwarf is exclusively GW the only way they can make any return on their magazine is to charge a boat load of money for it. Personally I only buy WD if there is something I feel is worth $9 inside. I digress...

 

[me_in_japan]

I've never seen so many people so angry though, it's one piece of badly handled PR after another. 1. Switch to resin (badly explained, little buy in from most) + 2. GW Australia embargo + 3. Fullblown IP lawsuit. I think Australians at the very least would think about switching to doing something else.

Its not just in Australia that GW customers are getting shafted. Prices here are just as bad. About 3 years ago it was 250 yen to the pound. At that time GWJ prices in yen reflected the GWUK price in pounds. Now, however, its about 135 yen to the pound. Have GWJ prices changed? Yes, they have. Theyve gone up. Everyone here used to shop from Wayland and Maelstrom (We have no FLGS here in Nagoya. The nearest GW store is in Tokyo, about 2 hrs away by bullet train.) Now that GW have taken away our ability to buy online, they've essentially removed our ability to buy their products. I mean, a week ago, I paid 11,115 yen for some new dark eldar from Wayland. As of tomorrow if I want the same models I have no choice but to pay 22,600 and buy it from GWJ.

Am I going to swallow this?

Of course not. I'd be an idiot to do so. Even the die-hard GW fanboys round here are starting threads on the local forum with titles like "Napoleonics anyone?" or "Starting Warmahordes" or even "http://www.nagoyahammer.com/forum/viewtopic.php?f=20&t=1010Cutlass by Gav Thorpe"

GW have peaked. In fact, theyve been sliding for some time, but this latest nonsense is the end of the slide and the start of the fall. I'm sad to say it, but I really believe that from here on in, it's likely to get much worse, and fast. There will be more price hikes, fewer sales, and ultimately, the company will go down. I just hope the creative guys (particularly Jes Goodwin) move on to greater things.

Ach well *raises glass* To Warhammer 40k. We will miss you.

 

[ChemicalFencer]

My comment may be removed from the OP's intent for this topic but I'd like to know if people in non European countries affected by GWs new shipping rules have found alternate delivery methods?

I ask as here in the Middle East we have Aramex Shop and Ship service. This gives me a mail box number in the UK, US and now China. Once the package arrives in my mail box I have to wait a few days and its flown to me here in Qatar. It cost $35 to set up and costs about $1.6 per half kg (kinda expensive). There are a few draw backs, it's a courier service so no sharps, no liquids etc. All in all a very handy service.

Anyone recon they know of anything similar in their own country?

CF

 

[spazomatic]

I feel your pain brother.
But the bottom line is: GW DOESN'T CARE! STOP THINKING THAT YOUR OPINION MATTERS TO THEM!!
There will always be people out there willing and able to give GW their money.
If we are serious and our outrage is genuine, we need to do 2 things:

1. STOP BUYING GAMES WORKSHOP PRODUCTS. FOREVER. I don't know how long this nerd-rage is going to last this time. Every time GW has a price increase, there's, "Rage, Rage, Rage... oh! GW just put out something new and shiney! All is forgiven." We really need to put our foot down this time. It will be easier for me because there will be no more metal figures produced. I prefer metal figures, always have, always will.
There are plenty of other companies who put out quality games and quality miniatures (Wyrd, Privateer Press, etc.) who at least act like they care about the gamers. We need to vote with our wallets. Don't buy GW minis, paints, glue, etc. NOTHING!

2. ENCOURAGE YOUR GAMER FRIENDS TO START PLAYING OTHER GAMES. (If they don't already.) Show up to game night with the Malifaux rulebook and a set of those awesome miniatures. The miniatures will speak for themselves. People will want to play.

Raging in GW's face is not going to make a lick of difference to them. Don't waste your time with long-winded letters that will go unread.

SAY IT WITH ME:

"GW... DOESN'T ... CARE!"


Carry on.

 

[didi et gogo]

Letter campaigns are incredibly hard to get going. You would really need to be riding a huge upswell of popular support—support that translated into letters—and that support is evidently not here. Instead, the solution is something like spazomatic's rant: stop buying GW products.

Part of the reason that GW can keep raising its prices is because its still profitable. Every time they raise their prices, fewer people can keep up the hobby with GW products. However, this decrease in the customer base is compensated for by the increase in prices. The remaining customer base is enough to keep the company profitable—perhaps even moreso. The only way that price increases will go away is if they scare away enough of the customer base that the remaining patrons can't pay back the difference.

Here's a toy example.
Imagine that a model sells for $5. The customer base is 100 people, and each of them buys one model. The revenue from those sales is therefore $500.
Now imagine that the price for that model is hiked 1.5x to $7.50. The customer base shrinks by 25 people to 75. The revenue from the sales at the increased price is $562.50.
The company has made increased revenue by $62.50, 12%, while losing an entire quarter of their customers.

In this toy example, the company would have to have alienated 34% of its customer base to result in a net loss. With 66 customers paying $7.50 per model, they would make only $495.00 of revenue. Of course, this is just a toy example, and the real situation is a bit more complicated, but it gets the point across.

If you want price reductions, make GW pay for it. That doesn't mean being unhappy about price increases and grumbling about them on fora. That means not buying GW's miniatures or products. Enough people have to do this to make the price increase fail to pay itself back.

 

[Bishop Odo]

This happens every time there is a price hike, and yes, GW is killing there own market, committing slow suicide. Compounded by this resin fiasco which was handled really poorly, but really what do you expect from GW. I stopped gaming, with GW products, about 9 years and thought I’d get back into 40k. I gave up, sure I bought a set of rules off eBay and a few shoulder pads to update my older stuff, but the price and army imbalances where just too hard to take, especially with some of other sweet miniatures games out. So, I paint and game still, but GW will not get anymore of my money. The only thing that could save me from quitting, and a lot of my friends, would be a plastic Thunderhawk